Monday, October 20, 2014

NSA-Telecom Inc?

Click here for related story [Forbes]
[An update (21OCT2014) on this story follows the text of this post

Forbes reports a highly unusual transaction from one of our most revered Blue Chip companies -- none other than Big Blue!

Reportedly, IBM had "steep operating losses" and "... will PAY $1.5 BILLION to get rid of its [micro]chip division."
[For IBM, $1.5 Billion is slightly more than a "rounding error" - why get rid of a future profit center?]

Further, "... IBM has essentially agreed to GIVE its Microelectronics OEM semiconductor business and manufacturing operations to Globalfoundaries."

So, why would one of the largest companies in the world, with $100 Billion in operating revenue, not only GIVE away its microchip subsidiary -- a GROWTH industry, but PAY $1.5 BILLION to get rid of it!

What's the story behind the story!

Let's review the unusual factors in this transaction.

1) "IBM has agreed to essentially give its Microelectronics OEM semiconductor business 
     and manufacturing operations to GlobalFoundries."

2)  The Emirate of Abu Dhabi is the owner of GlobalFoundaries
      through its subsidiary Advanced Technology Investment Company (ATIC).

      a) Abu Dhabi has become a prime Middle East ally of US Intelligence, as well as a key
          money-laundering conduit for NSA and CIA [and drug cartels] for a covert
          corporate acquisitions process.
          [Think of a sophisticated, high-tech Iran-Contra operation; Janet Reno, Clinton's 
           Attorney General, shut down investigations of BCCI and its control of US banks]

      b) This acquisition will make Abu Dhabi the controlling entity in supplying integrated circuits
          for telecom companies AMD, Broadcom, Qualcomm and STMicroelectronics.
          [Will NSA add in firmware to these chips to track and reroute data to NSA servers?]

3)  ATIC acquired AMD [Advanced Micro Devices] in 2009 and Chartered Semiconductor in 2010

     a)  AMD is the second largest [Intel is first] global supplier of microprocessors and dominant as
          a major global supplier of graphics processing units [e.g., your cell phone screen imagery].
          [If you have a PC, it likely has either an AMD or an Intel processor in it.]

     b)  AMD acquired the low-power micro-server manufacturer SeaMicro
           (1) Collaborated with Verizon to power cloud services - and cell phone transmissions.
           (2) Signal processing bandwidth at peak of 1.28 Tb/s [terabytes per second]
                 [that's per second; Comcast limits users to 500 GB per month!]
           (3) Cloud Computing capacity [supporting cell-phone data links] per server storage unit
                 is five (5) petabytes [or 5,000 terabytes, or 5 million GB].
                 [Size is important; up to 1,800 servers can fit in a single server rack - or 9 million TB!]

     c)  AMD is also a major global supplier of motherboard chipsets, embedded processors and
          graphics processors for servers, workstations, personal computers, and embedded systems
          applications -- supporting the telecommunications industry.
          [thus, the path for NSA to embed firmware on most computers and cell phones.

4)  This acquisition will make Abu Dhabi the controlling entity in supplying integrated circuits for telecom companies AMD, Broadcom, Qualcomm and STMicroelectronics.

5)  Sanjay Jha, CEO of GlobalFoundries, was the Chairman and CEO of Motorola Mobility [cell phones/technology currently being acquired by Lenovo of China].  Earlier, he was the CEO of Qualcomm.

His spin-offs, subsidiaries, and acquisitions include
      a) ON Semiconductor [integrated passive (monitoring) devices,
      b) Solomon Systech [image processing]
      c) Iridium [network of 66 communications satellites; principal
          client is DOD]
      d) subsidiary is Motorola Solutions [RFID (Radio Frequency
          identifies, tracks and exploits electronic cell phone tags containing stored data
      e) acquisition is Sendo [created Symbian, a closed-source mobile Operating System (OS);
          notable for its graphics user interface [GUI]  and multiple language capabilities.
       f) Freescale Semiconductor [digital signal processors/controllers], was purchased by the
          Blackstone Group [assets: $35 Billion; and the Carlyle Group [assets: $40 Billion].
          Reportedly engaged in an electronic "cloaking" process which would hide aircraft from
          ground radar; additionally, their R&D projects include radar interference and electronic
          countermeasures designed to disrupt electric grids, the Internet, the Cellular network, and
          emergency frequencies used by police and fire departments.

      - Freescale Semiconductor is particularly notable since 20 of its employees were on Malaysian Flight 370, which went missing.  Nine of those passengers were the owners of a patent which contributed to the "cloaking" process.  In addition, there were 20 US Special Operations passengers aboard - whom some believe carried out the hijacking, flying the plane to Diego Garcia and imprisoning the passengers.

Our conclusion?

We'll take a wild guess here and conclude that NSA has joined forces with private sector financiers and the Abu Dhabi leadership to gain control of a select group of companies which dominate the cellular communications industry, to include those involved in manufacture of the microprocessor components integral to computers, storage, and processing -- which are then integrated into computer systems and cellular devices.  With the corporate structure based in Abu Dhabi, there is no concern over running afoul of the US legal system.

Having control over the manufacture of all those components would allow for the insertion of dormant coding on the microprocessors which could be activated at some point in the future to allow a "back door" into computers, servers and cellular devices to either initiate a virus, or to transmit all signal data to a remote server -- defeating all installed anti-virus measures.

We've seen some of this activity in action, and have to presume that the rest is at least on the drawing board, waiting for the opportunity to seize control of your cell phone calls and texts, your laptop, and your company's servers.

As a footnote, we'll add a new Congressional Inquiry to this account.
It seems that General Keith Alexander, former head of NSA, created a company called IronNet -- designed primarily to win NSA contracts and retain access to all of NSA's capabilities.

It seems that he's carried this to an extreme by bringing NSA's Chief Technical Officer [CTO], Patrick Dowd, over to his company 20 hours per week, which, of course, blatantly violates federal law and government regulations.  Alexander defended his actions by agreeing to pay Dowd for his time.

Rep Alan Grayson [D-FL] is investigating, and called this arrangement
" obvious violation of standards of ethical conduct for employees of the Executive Branch"

Those of us who served in the Military with Alexander are gratified that this obsequious twit is finally being revealed for the charlatan that he is.